Upstream Merger Hikes Prices for Businesses, Leaves Consumers Unaffected
In this study, researchers examined how joining together two companies that sell products at different stages in a supply chain can affect prices. They looked at a case involving an egg market in Norway. The researchers created a model to see what would happen if the companies merged, and they found that after the merger, the prices paid by the egg producers did go up, but the prices that consumers paid remained the same. This suggests that when companies merge in this way, it could end up costing the firms buying the goods more money, but the cost to customers stays the same.